Algeria is intensifying efforts to strengthen the Algeria Italy investment partnership by actively courting Italian investors and promoting new opportunities across multiple sectors beyond the traditional energy relationship between the two countries.
Long dominated by hydrocarbons, economic ties between Algeria and Italy have evolved significantly in recent years. While natural gas remains the backbone of bilateral trade—making Algeria Italy’s main gas supplier—cooperation has increasingly expanded into manufacturing, agriculture, and other strategic industries.
One of the most notable developments has been the entry of the automotive sector through the Stellantis group’s Fiat brand, which launched vehicle production projects in Algeria. This diversification reflects Algeria’s broader strategy to modernize its economy and reduce its heavy reliance on hydrocarbons.
Agriculture has also emerged as a key pillar of the Algeria Italy investment partnership. The Italian group BF has launched a €400 million investment project in partnership with Algeria’s National Investment Fund (FNI), the financial arm of the Algerian state. The project focuses on producing wheat and pulses in the Timimoune region in southern Algeria.
This initiative aims to strengthen Algeria’s agricultural production capacity while attracting foreign expertise and technology in large-scale farming. It also reflects the government’s goal of improving food security through international partnerships.
Despite these developments, Algerian authorities believe the potential for cooperation with Italian investors remains far greater. As a result, Algeria has stepped up its economic diplomacy in Italy to attract new projects and business partnerships.
Algeria’s ambassador to Italy, Abdelkader Khalifi, has been actively traveling across the country to engage with regional business communities and promote investment opportunities. Rather than focusing solely on Rome, the ambassador has sought to connect directly with local entrepreneurs and institutions.
On March 2, Ambassador Khalifi participated in an economic meeting in Fabriano, a town of around 29,000 residents located in the province of Ancona in Italy’s Marche region. The event was organized by the mayor of Fabriano in coordination with the president of the town’s cultural center, Abdelkader Makri, according to the Algerian embassy.
During the meeting, Khalifi presented Algeria’s business environment and highlighted the incentives available to foreign investors. He also outlined potential areas for partnership and cooperation across several sectors.
Speaking before local officials, business leaders, and academics, the ambassador encouraged companies from the Marche region to explore the investment opportunities available in Algeria.
These outreach efforts are expected to continue. Following the Fabriano meeting, another Algerian-Italian business forum is planned in Ancona, the capital of the Marche region.
According to the ambassador, the upcoming forum aims to strengthen direct exchanges between entrepreneurs from both countries and stimulate new investment initiatives.
Through initiatives like these, Algeria hopes to deepen the Algeria Italy investment partnership and expand economic cooperation beyond energy. Officials view this approach as a key element of Algeria’s broader strategy to diversify its economy, attract foreign capital, and build stronger regional economic ties with European partners.
Sami B. is the founder and editor of Algeria News Gate, an independent English-language platform covering Algeria’s political, economic, and business developments. Based in Europe, he reports on official announcements, economic trends, and international relations involving Algeria.